0 of 21 Questions completed
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading…
You must sign in or sign up to start the quiz.
You must first complete the following:
0 of 21 Questions answered correctly
Time has elapsed
Which of the following pension funds promises to pay a specified benefit to qualified retirees?
Which of the following pension funds provide a sum of money which the retiree can use to fund retirement cash flow based on amounts the individual has contributed, employer contributions, and investment return rates?
Defined benefit plans guarantee a retirement income benefit, usually based on which of the following except:
Which type of pension is referred to here: Uniform amount or one based on years of service or residence but independent of earning’s?
Which type of pension is referred to here: Based on earnings. It is financed by payroll tax contributions from employees, employers, or both.
Which type of pension is referred to here: Paid to eligible persons whose own or family income, assets, pension income, or a combination of these fall below designated levels.
Which type of pension is referred here: Uniform amount normally based on age, residence and/or citizenship but independent of earnings
Which of the following statement is incorrect about defined benefit plan
Even though DB plans promise to pay a specific retirement income benefit, there is no guarantee the full benefit will be paid.
Notional accounts record contributions in the individual accounts and then apply a rate of return to the balances, when the participant retires, the accumulated notional amounts are converted into a pension payment stream, based on life expectancy. These plans may be called—
Which of the following least likely represent the downside of a defined contribution plan?
—represented an agreement between a buyer and seller whereby the seller promised a stream of payments for a period of time (or life) and the buyer agreed to make an up-front payment.
Under which type of annuity the annuitant begins to receive annuity payments immediately after depositing a certain lump sum.
Under which type of annuity the annuitant receives an annuity after a certain number of years after depositing a certain lump sum.
Which of the following statements about annuitization is correct?
Statement 1: Annuitization is generally irrevocable
Statement 2: Annuitization have erosive long-term effect of inflation on purchasing power
An annuity contract issued on two lives, where payments continue in whole or in part until the second person dies, is called a—
An annuity issued on more than one life, under which payments stop upon the death of the first person, is called a—
When someone says the funds in an annuity are “annuitized,” he or she is referring to the owner who has used the amount accumulated in the annuity to purchase an annuity payment stream from the insurance company so any amount previously accumulated in the annuity no longer belongs to the owner.
—is an annuity contract provision in which the company agrees that if any new rate established by the company is below the rate specified in the provision, money in the contract can be withdrawn without a company-imposed penalty.
Which of the following statement is correct:
Statement 1: In the case of fixed annuities, payments will be fixed and clearly identified at the beginning of the payout period.
Statement 2: Variable annuity payments are not fixed, and only the initial payment will be identified
Which of the following statements least likely represent the characteristics of Indexed annuities?